Since at least the mid-1990s, the Danish Navy has proposed saving money on the headquarters staff of Island Command Greenland out of isolated Grønnedal by relocating most of the 65 members either to the Greenlandic capital at Nuuk or bringing them back to Aarhus in Jutland. However, the Greenlandic government has successfully lobbied to keep the command intact in order to boost the local economy.

Under the terms of the "2010-2014 Danish Defense Agreement" approved by the Danish parliament on 24 June 2009, the Greenland Command will absorb the (nearly defunct) Faroe Island Command. The combined command will be placed in Nuuk under the name of "Arctic Command".